Napster parent Roxio expects to exceed its previously-announced second-quarter targets, the company revealed last night.
The company now predicts revenues of approximately $9 million - it had previously-predicted $8 million. The company's soon-to-be-sold software division is expected to contribute $18 million to the bottom-line, rather than the $17 million it had expected to accrue.
Company chairman and CEO, Chris Gorog, said: "The strength of Napster's results reflects increasing traction in the online music market and a favourable mix toward subscribers."
He confirmed that the company's proposed sale of its software division looks set to close at the end of the year (subject to shareholder and regulatory approval).
"The successful completion of this proposed transaction will significantly strengthen Napster's balance sheet and eliminate the need for additional funding for the foreseeable future," he said.
The company's shares climbed 12.12 per cent on trading yesterday, closing at $4.44.